Daniel has worked as a computer programmer and senior officer of Litem Systems Inc for several years.He has built up a close relationship with a number of Litem clients.One of them asks Daniel if he can do some programming work on the side.It is the same kind of work that Daniel does for clients of Litem.The client would hire and pay Daniel directly.Daniel would do the work on nights and weekends.Daniel is interested,but he cannot take the work because it would be a breach of his fiduciary duty and,if he does take it,he could be forced to pay over all of his profits to Litem.

Question

Quizplus · Accepted Answer

Daniel's fiduciary duty requires him to act in the best interest of his employer, Litem Systems Inc. By taking on work for a client of Litem on the side, he would be competing against his employer and potentially using their resources or confidential information to do so. This would be a breach of his fiduciary duty and could result in legal consequences, including having to forfeit any profits earned from the side work to his employer. Therefore, Daniel cannot take on this programming work on the side.

Daniel Has Worked as a Computer Programmer and Senior Officer